FCA Proposal Is Unfair And Would Hinder Economic Growth

As American industry moves toward building back better in the face of a continuing pandemic, Sens. Chuck Grassley, R-Iowa, and Patrick Leahy, D-Vt., have introduced the False Claims Amendments Act of 2021, proposing revisions to the False Claims Act that could scuttle these efforts before they start by dramatically changing a key unanimous U.S. Supreme Court precedent.

The FCA is the government's primary weapon for combating fraud against the federal government. The FCA arms law enforcement officials with a penal remedy of treble damages and civil penalties against those who knowingly or fraudulently present false claims to the government.

It also empowers private citizens, known as relators, to bring qui tam actions — suits brought on the behalf of the government — and to obtain a substantial bounty if they prevail.